IA Individual Health Benefit Reinsurance Assessment
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MEMORANDUM
July 25, 2005
TO:
The Honorable Mayor and City Council Members
FROM:
Michael C. Van Milligen, City Manager
SUBJECT: Iowa Individual Health Benefit Reinsurance Assessment
Personnel Manager Randy Peck recommends City Council approval to pay the 2004
assessment by the Iowa Health Benefit Reinsurance Association in the amount of
$34,426.15.
I concur with the recommendation and respectfully request Mayor and City Council
approval.
A1~
Mic~ael C. Van Milligen
MCVM/jh
Attachment
cc: Barry Lindahl, Corporation Counsel
Cindy Steinhauser, Assistant City Manager
Randy Peck, Personnel Manager
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Memorandum
July 20, 2005
TO:
FROM:
Michael C. Van Milligen
City Manager yO
Randy Peck ~
Personnel Manager
SUBJECT: Iowa Individual Health Benefit Reinsurance Assessment
In 1995, the Iowa Legislature passed the Individual Health Insurance Market Reform
Act. The purpose of the act is to make health insurance coverage available to
individuals regardless of their health status or claims experience and to improve the
overall fairness and efficiency of the individual health insurance markets. All carriers,
companies or persons who provide health benefit plans in the state are required to be
members of the Iowa Individual Health Benefit Reinsurance Association and are
assessed annually to fund the basic or standard health benefits plans. The act covers
self-funded plans, such as ours.
Our first assessment was $4,199. The amount has increased over the years. Since
this is a requirement, the payments were not submitted to the City Council for approval.
This year our assessment is $34,426.15. Bill Robinson of Gallagher Benefit Services,
our benefit and actuarial consultant, has reviewed the assessment and has informed me
that the amount is correct. He also stated that the assessment is less than what he
would have anticipated. The assessment will be paid out of the Health Insurance
Reserve.
I asked Corporation Counsel Barry Lindahl if this payment should go to the City Council
for approval. It is Barry's opinion, that due to the amount of the assessment, the City
Council should take action on the assessment prior to payment. I recommend that the
City Council be requested to authorize payment to the Iowa Individual Health Benefit
Reinsurance Association as the City of Dubuque's assessment for 2004 in the amount
of $34,426.15.
If you have any questions, please feel free to call.
RP:bf
cc: Barry Lindahl, Corporation Counsel
..' ~
IOWA INDIVIDUAL HEALTH BENEFIT REINSURANCE
ASSOCIATION
June 23, 2005
Members of the Iowa Individual Health Benefit Reinsurance Association
Re: Notice of Assessment
Dear Association Member:
The Board of Directors for the Iowa Individual Health Benefit Reinsurance Association has completed
compilation of the annual reporting information and assessment information for 2004. The actuarial
consultant to the Board has determined the adjusted loss ratio for the basic and standard policies to be
131.08%. Because this is above the statutory 90% loss ratio threshold there will be an assessment of the
entire Association membership. See Iowa Code section 513C.1O. Refunds will be made to those
carriers selling the individual basic and standard health benefit policies with a loss ratio above 90%
threshold.
Attached is the listing of companies and self-funded entities and the amount of their respective
assessments. Please find your name in the alphabetical column and your assessment amount. Your
assessment should be made payable to the Iowa Individual Health Benefit Reinsurance Association.
Please mail the check to Willard Boyd, Nyemaster Law Firm, 700 Walnut St., Des Moines, Iowa 50309.
If you have any questions, please contact Mr. Boyd at (515) 283-3172.
Assessment amounts paid to Iowa Individual Health Benefit Reinsurance Association are not deductible
as charitable contributions for Federal income tax purposes. However, they may be tax deductible under
other provisions of the Internal Revenue Code.
The assessment payment is due 60 days from the date of this letter. If the payment is not received
within 60 days of the date of this letter, the Member shall pay interest on the assessment from the letter
date at the rate of 1.5% per month. Thank you for your prompt attention to this matter.
Sincerely,
Board of Directors for the
Iowa Individual Health Benefit Reinsurance Association
Enclosure
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